The Agricultural Issues Center is now the UC Davis California Agricultural Issues Lab. This site has been archived.

Commodities & markets, International issues, Wine & winegrapes

What drives imports and exports of bulk wine?

Presentations to California Association of Winegrape Growers, April 2015.

The following conclusions are made in this presentation:

  • Exchange rates are one of several factors that effect grape prices.
  • A strong dollar makes imports more competitive with domestic wine, thus lowering grape prices in California (at least for those segments where imports are a substitute)
  • But decreasing U. S. demand for inexpensive wine coupled with large CA harvests also reduces CA prices (supply/demand)
  • We live in a global marketplace. The two strategies for success are:
    • Differentiation (i.e. reduce the potential for substitution)
    • Increased efficiency (out compete foreign producers)

See PDF presentation here: What Drives Imports and Exports of Bulk Wine? by James T. Lapsley

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The Agricultural Issues Center is now the UC Davis California Agricultural Issues Lab. This site has been archived.

 

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